Back to Top

How I scan for swing trade ideas

Posted on 9/20/2016
I use Telechart Gold (with real time Data) for all my scans. In Telechart scans are called PCF (personal criteria formula). Easyscans is another Telechart terminology used for creating scans.

PCF stands for Personal Criteria Formula for Telechart Software. It is a formula that you write to add a new sort criterion to the program.. PCFs written in Telechart searches for various Patterns/conditions described by the formula(s)


pcf.png

4% breakout


This is a very simple 15 year old scan idea that  has made me few million dollar profit over the years. It is used daily.


4.png
Bullish  

c/c1>=1.04 and v>v1 and v>=100000

If you want to reduce low priced candidates add a filter of c>3


Bearish

c/c1<=.96 and v>v1 and v>=100000

If you want to reduce low priced candidates add a filter of c>3


$ breakout

As my acount size has increased significantly over the years I rely more on this scan to find swing trade candidates.
dollar.png
This scan is good for high priced stocks. It helps you find both intraday setups and swing trade setups.

Bullish

c-o>=.90 and v>=100000
you can add a filter c1<c2 to reduce number of candidates but it can also eliminate sock with low range positive day so I do not use  that.

Bearish
o-c>=.90 and v>=100000
you can add a filter c1>c2 to reduce number of candidates but it can also eliminate sock with low range negative  day so I do not use  that.

Bullish and bearish combo

c-o>=.90 or o-c>=.90 and v>=100000

Bullish and bearish combo with price filter

c-o>=.90 or o-c>=.90 and v>=100000 and c>=30




Episodic Pivots (EP)

Episodic Pivots Strategy has been one of the most profitable strategy over the years and is used to find position trades. It gives very few good ideas in a year.

Episodic Pivots are major breakouts that can lead to multi month or multi year rallies. They are triggered by some news events. The scan only gives you candidates for further study. You can find more details about this strategy on this site in sidebars.

c/c1>1.04 and v>3*avgv50.1 and v>=300000


EP.png



These scans are used daily to find swing trade candidates during the day. For finding anticipation candidates I use a different set of scans after the market close.







How to organize yourself for trading everyday

Posted on 9/19/2016

Organize yourself for trading everyday

Everyday do the same thing over and over in a systematic manner.
Once you have a well thought out method the day to day challenge is largely about implementing your plan.
That requires setting up a daily routine and adhering to it as far as possible.

Situational Awareness

We know swing setups work, but overall market conditions can have impact on the % of trades likely to work. So SA helps you in controlling your trade pace. In good environment you want to be more aggressive. In bad conditions you want to focus on risk management.
Question you need to ask daily for SA:
What is your market bias today
Is there a plan to exploit it
Is there an alternative plan

Anticipation

Anticipation allows you to control risk and get in to setups early or as they are breaking out. Anticipation is also useful on current open positions. If you have thought through what you will do under different circumstances on your open positions you are in better position.
Question you need to ask daily for Anticipation:
What homework have I done to identify good opportunities ?
What are the 3 to 5 very high probability opportunities I must focus on today
What is my plan for existing open positions

What is working currently

Different phases of market favor different kind of stocks or setups. Some time beaten down stocks do well. Sometime stocks with momentum do well. Some time value or growth is in favor. Knowing what is working helps you focus on hot opportunities.
Question you need to ask daily for What is working:
What is working in the market currently
What stocks and sectors are leading the market currently
What style and setups are working currently
What kind of follow through is happening

The hardware and software

All our good plans or intentions or setups are of no use if our hardware or software fails or is not optimum for trading.
Are you setup for today
Is your hardware in proper condition
Is your software working without glitch
What is your backup plan in case of failure.

Your mental state

Your mental state affects your trading. If your are well organised and in proper frame of mind for trading you will be successful. If you are excited, harried, angry, disorganized you will find same thing in your trading.
Are you calm, excited, harried , or confused today?
Are there distractions likely to affect your trading today?

Continuous improvement

As a trader you need to focus at least 25% of your daily efforts on developing new trading setups and ideas and on enhancing your trading skill and knowledge of market. A purposeful plan to do this will cumulatively help you transitions in to new setups and ideas as market changes.
What is your plan for enhancing your market knowledge today
What is your plan for enhancing your trading skills
What is your plan for enhancing your trading mindset

What needs to happen for me to be a confident and in control trader

Do I have resources to get there?
Do I have the burning drive to get there?
Everyday using this kind of framework will make you a better trader . If you rigorously follow these kind of checklist you will see improvements in your trading in 90 days.

How to use momentum to swing trade

Posted on 9/15/2016

When swing trading stocks with momentum the lowest risk entry is on first valid swing trading setup after momentum is established.

ren.png
REN above is an example of a anticipation setup that is more risky as of now.

In order to find momentum in above example of REN we are using Stockbee Trend Intensity Indicator TI 65 ( which gives you momentum for a quarter). The green zone indicates TI65 values above 1.05 and that confirms stocks has established above average momentum or is in Intensely trending period.

Once TI 65 is above 1.05 the first or second swing trading setup that develops due to pullback or sideways consolidation is the ideal buy setup. It is a trend continuation setup. In case of REN that successful setup was on August 4th. Earlier breakout on July 22 failed to follow through.

As you can see in the chart below that day it appeared in STIB ( Stockbee trend intensity breakout scan ) signalling swing entry. In next 14 days stock went up 162%. Subsequent breakout had much smaller 30% follow through.
ren1.png

Now it is again setting up , but now it is a risky setup as the trend has progressed for many days and chances of reversal or range bound action are more.

If you want to hold stocks for longer term swing moves then getting in to momentum stock early is key. Early entry allows you to hold it for longer duration as against 3 to 5 day hold for normal swing.

As momentum phase progresses stock can setup multiple times and offer swing trade opportunities , but risk increases as trend matures.

If you are looking for longer duration position swing trades or trend tardes  then focus on “Young momentum Candidates”

Look for stocks that have just entered momentum phase and are now having their first consolidation or pullback.

Here are some of the“Young momentum Candidates” setting up for possible breakouts:

anw.png

dakt.png

ocn.png

pahc.png

If you want to make money swing trading focus on “Young momentum Candidates”

Stockbee 50: New entrants 09/12/2016

Posted on 9/12/2016

The Stockbee 50 is a list of fastest moving stocks in the market. These are stocks with above average momentum.

Stocks with good momentum keep going up. If you are serious about making money, it is a good idea to keep an eye on the stocks in the Stockbee 50 list.
Momentum ranking is relative and so stocks that gain momentum move up the rank and those that lose momentum drop off.
There 18 new entries in the Stockbee 50 list this week. The new entries at some point will setup again. Once they are ready, they can be entered as an anticipation trade or as a breakout trade.
There are 23 that dropped from the list this week. It is also a good idea to keep an eye on these as well as they might set-up again for a second leg up.
List of New Entrants:
CLCD UAMY NAVB CYNA CPHD APIC SORL ACW CHK AAOI NVLS VNRX NAV TIVO SBLK NVFY FSI BCEI
List of stocks dropping rank
ROKA SQNM TLYS AEPI AQXP OCLR FELP SINA HDSN SPAR KURA CSTM GSV BCOV HLIT DXPE EZPW AMD WATT FSAM AMBR KPTI LEE
From the list that has dropped ranking
TLYS FELP
is looking good. Both might need to go sideways for few more days before breaking out.

Stocks move in the direction of the range expansion

Posted on 9/08/2016

Stocks move in the direction of range expansion. This is the basic tendency of stock market. 

HWAY above is a recent example of that. Stock had not had a positive range expansion for few months. A range expansion in 

If a stock has not had a range expansion of certain magnitude for a considerable period of time and then suddenly has a range expansion, it is a signal that stock is likely to  move in the direction of the range expansion. 

BID is another example of same phenomenon.



In July BID had a range expansion to the bullish side and from that it moved in the direction of range expansion.

If you want to make millions trading then study this phenomenon in the market and exploit it. All successful setups in market are developed from such basic underlying market observations over thousands of stocks.

Once you understand this tendency of stocks , all that you need to do is develop your setup and process and wait for next good setup to show up.

BCRX shown below is an example of that kind of setup showing up yesterday along with bunch of others. Last time it had range expansion it made 50% plus move in few days.


If you are really serious about  making money  trading stocks , master swing trading setups like these. 

Stockbee 50: New entrants 09/06/2016

Posted on 9/06/2016


The Stockbee 50 is a list of fastest moving stocks in the market. These are stocks with above average momentum.

Stocks with good momentum keep going up. If you are serious about making money, it is a good idea to keep an eye on the stocks in the Stockbee 50 list.
Momentum ranking is relative and so stocks that gain momentum move up the rank and those that lose momentum drop off.
There 27 new entries in the Stockbee 50 list this week. The new entries at some point will setup again. Once they are ready, they can be entered as an anticipation trade or as a breakout trade.
There are 25 that dropped from the list this week. It is also a good idea to keep an eye on these as well as they might set-up again for a second leg up.
List of New Entrants:
PSG PI HLIT SKLN LEE SPU CRNT MSTX ABEO SINA FELP OCLR EMES CSTM BREW CRK TLYS PQ AEPI FSAM KURA AQXP NTP ROKA KPTI MPET RJETQ
List of stocks dropping rank
ENRJ CPRX SPHS ATRS SNMX NYMX KRO GNW VNDA DAKT CVGI MX SNSS AOSL KTOS CSII ANW ELMD EVH LPTN CLNE PCMI AMDA IPDN ETAK
From the list that has dropped ranking
ANW
is looking good. KRO and DAKT might need to go sideways for few more days on low volume before breaking out.

How to find stocks setting up for breakouts


To anticipate a breakout look at stocks currently not undergoing momentum burst.

Stock should be in extremely low momentum phase for anticipation .
It can be a shallow pullback or consolidation in established momentum phase.

To anticipate look for stock with extremely low volatility

A stock with low volatility in last 5 to 10 days is ideal candidate as part of a continuation setup.
Look for series of low range bars in last 5 to 10 days
Look for stocks with bollinger band squeeze.

Avoid Anticipation setups on extended stocks

First or second anticipation setup in established trend is best
Extended trends needs to be avoided for anticipation as failure is high on them

Look for early entry on anticipation candidates

Anticipating a breakout helps you get an early entry and can improve your per trade profits.
It also can lower your risk as your stop is closer.
It can help you profit from even smaller moves.
For that entry without waiting for breakout is best.

Anticipation requires more pre planning and effort than buying a breakout.

You need a process flow to do that.
The process should be efficient and done daily after the market close.
The suggested process flow is a template you can develop your own process.

Only 3 to 5 quality ideas should be tracked

"A" grade pre Momentum Burst setup should be your first priority
Once you have list of anticipation setups narrow them down to 1 to 5 for next day action.
Quality is more important than quantity

In order to find Bullish Anticipation setup use DT and TI 65 lists in Telechart

Double Trouble Scan

US common stocks
c/minl252>=1.8 and minv3.1>=100000
Price % change Today between 1 to -1%

TI65

US Common stocks
avgc7/avgc65>1.05 and minv3.1>100000
Price % change Today between 1 to -1%

MDT Above 1.19

US Common stocks
c/avgc126>1.19 and minv3.1>100000
Price % change Today between 1 to -1%

After running these three scan merge them together as some stocks will be common.

Go through the list to find setups that are setting up for possible b/o

What to look for in good anticipation setup

series of narrow range days in pullback/consolidation
orderly pullback with no 4% b/d during the pullback or consolidation
low volume pullback
low volatility during pullback
linear first leg if looking as continuation setup
Stock should go up smoothly and not in volatile manner
3 to 10 days consolidation/pullback
not up 3 days in a row
This entire process once setup tales just 20 minutes daily. You can find 5 to 10 good set ups using this process daily. In good market conditions these setups can make 8 to 20% in just few days. So if you are serious about making money swing trading setup these scans and practice finding good setups. 
Anticipation Watchlist 
these are stocks i am watching for possible breakouts.
OPTT INST DXPE FLXN BWLD INGN ARDX NVRO PETS TBPH RTK OLLI LOCO TNET AIMT VAC PGND FDP ACIA YRCW VSAT SQ ITCI ISRG TWOU ANW BDC NSM ERII ZLTQ IPHI UIS DNB FCN SPNC ABCO ZBRA BID SALE CVLT SCSS OFG UNT PCLN BHE PODD SMG AWI KLXI NCI NUS SUPN SREV TPX EME CTB MIDD MHK ENLC PES MTZ YELP XPO FFIV MBFI STAR AZPN IRWD HTH LLL IFF WMGI CGNX PVH DXCM ECR DKS AWH URI LSCC LPI EXAS VAR EXTR AMKR MBI HRG RACE ENTG TPH PH CNX SWK FBHS PGRE TRGP CMI ARIA NTAP SWKS JBL HUN CIT QGEN EW BDX QEP HOLX BBY TRMB GRPN NAVI YNDX GNTX MXIM CERN ADI PAYX SLM MAS UAL NXPI YUM KKR MPC AAL MMM TWX UNP TXN CSX GLW AIG BSX QCOM HPQ FB MSFT JD BEL CX BSBR ERF NGVT

Bullish Anticipation Setups for Friday

Posted on 9/01/2016

ACIA EBIO YRCW PBYI IDXX ZLTQ MGNX IMS ITCI DAKT CHRS PODD ALGN MKSI ANGI DAN VIAV ESL HWAY VAR UNT LYV EXAR AMKR DXCM LTXB SKYW ANET KMX SMG PE RUN CNX JBL CRESY MRK HPQ CERN CGNX JACK MAS OXLC OME ETP INGN PAYX APD CVLT PBR S AWH PATK TNET YNDX NAVI CVG TRGP SM GLW DKS GD RGEN SPNC HOLX SON VIV CMI VAC TSN GOOGL ABCO AMGN GOOG NCI WBC RACE ERII TXN FN BHE XPO RICE TEL BIIB NTAP TRMB QGEN DNB SREV MBFI AMH CTB ILMN NSIT INN PH LOCO SSTK FFIV OSK ENLK BID TEN AAPL WING DPZ HAR NUS IILG NDSN CR NWL NXRT GNTX TPX BWLD XXIA OFG HRG BEL FMSA AAL PETX SCSS WWE TKR NBR AVID UIS ALK XIN CAT CENT FET PWR IRBT FL COHR SWN MIDD FRAN USAT GPRO BBY PN CWST KMT CNQ URBN MTZ DXPE QEP CHGG ERF CPA